Tánaiste Simon Harris has warned that pharmaceutical exports from Ireland to the US may be hit with punitive tariffs “within the next few weeks,” adding that this action could mark the beginning of a wider strategy targeting critical European sectors, reports RTE.
During an appearance on RTÉ’s Prime Time, Mr Harris explained that in a recent meeting with US Secretary of Commerce Howard Lutnick, it was made clear that President Trump plans to impose EU-wide tariffs on five key sectors — pharmaceuticals, cars, steel, aluminium, and semiconductors.
“It was suggested to me that [pharma tariffs] may not come at the same time,” Harris said. “What we’ve seen last night is likely to be the start of a process and not necessarily the end moment, reports RTE.
“I think it would be foolish not to operate on the assumption that it is likely that there will be further sector-specific measures when exactly remains to be seen, potentially within the next few weeks,” the Tánaiste added.
Mr Harris said that Ireland had “anticipated this risk for some time” and has been actively working with other EU nations that also have major pharmaceutical sectors to respond collectively, reports RTE.
He noted that around twelve EU countries are expected to take part in a strategic dialogue with industry stakeholders organised by the European Commission next Tuesday — a step that Ireland had been advocating for.
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When asked about remarks from a French government spokesperson suggesting the EU could respond by targeting US digital services, the Tánaiste described this move as “the nuclear option,” adding that it does not represent the broader EU viewpoint, reports RTE.
“We don’t agree that that’s the correct approach,” he said, warning that hitting digital services would be particularly damaging for Ireland.
“What we should be doing is looking to de-escalate but always being willing to bring forward measures if they’re required,” reports RTE.
Mr Harris’s remarks follow President Trump’s announcement on Wednesday of a 20% tariff on EU goods, though pharmaceuticals were not yet included.
The move rattled international markets and raised alarm over the possibility of a full-scale trade conflict between the US and the EU, reports RTE.
Ireland, as a major base for global pharmaceutical and life sciences companies, stands to be significantly affected if trade tensions worsen.
The Tánaiste also pointed out that a long-lasting environment of steep tariffs could hurt future business growth.
“If we end up in a very high tariff environment, the chances of new jobs and new investments slowing down… becomes a very real risk,” he said, reports RTE.
Nonetheless, he maintained that many of the firms based in Ireland are likely to stay, given their access to the EU single market and the challenges of relocating established infrastructure.
“We’re entering a period of significant economic turbulence,” he said. “But we will get through this – step by step, day by day,” reports RTE.
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